Bob Brilon, President & CFO INVESTOR PRESENTATION October 2015 Common Stock 27.7 MM Shares GO Enabling Cloud Video Surveillance Stock Symbol: IVDA This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events. These statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievement described in or implied by such statements, including statements relating to: (a) Ivedas future revenue, expenses, margins, profitability, net income, taxes, adjusted net income, adjusted operating expenses and other measures of results of operations; and (b) Iveda Solution's ability to capitalize on industry trends. Actual results may differ materially from the expected results described in our forward-looking statements, including with respect to: development and acceptance of Ivedas services; competitive risks, including competing technologies, products and services, and the competitive activities of our competitors; risks associated with the introduction of new products and services; risks inherent in strategic relationships, and technology and service integration efforts. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions. Iveda assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the Iveda Solutions' securities should not place undue reliance on these forward-looking statements. 2 FORWARD LOOKING STATEMENT Enabling, Disruptive Technology CLOUD based - NO On-Site SYSTEMS or DVRs License SERVICE PROVIDERS to compete for Market Share INVESTMENT HIGHLIGHTS 3 SENTIR - Internet-based video surveillance PLATFORM Enabling Plug and Play Video Surveillance Proprietary and Efficient Software Platform Proprietary cloud based architecture Patented components Storage and Compute efficiency for Big Data Defined Path to Profitable Growth Service Provider Contracts in place achieve profitability Extremely Scalable Recurring Business Model LICENSE large Service Providers to deliver to Millions of established customers Large & Growing Market Nearly $60B Internet based video surveillance market Iveda - CLOUD video surveillance Access from your phone, tablets, and computers anywhere in the world Alerts and SmartPhone Notifications Live and recorded video CLOUD is the Disruptive Technology Displacing DVRs and traditional on-site systems. IVEDA ENABLES Service Providers to compete for Market Share (Telcos, ISPs, Data Centers, Cable) We LICENSE our CLOUD video surveillance software platform They SELL Security/Peace of Mind to their millions of subscribers Plug and play cameras COMPANY OVERVIEW 4 Simple Revenue Model - Extremely Scalable Service Providers pay IVEDA a monthly fee per Camera Service Providers Install SENTIR in THEIR Data Center THEY have the COST of hosting and storage License per camera for SENTIR Customer User Interface; Billing & Admin Tools Data Center Storage and Compute Optimization; Free Mobile Apps REVENUE MODEL 5 Telecom Data Center MARKET OPPORTUNITY 6 Sources: IDC, Allied Market Research Estimated CAGR for global sales for IP video surveillance from $38.6B $18.7B $57.3B 37% User Friendly Access live & recorded video from your computer or mobile device. No On-Site DVR Data Stored and Accessed in the defined CLOUD Easy to Deploy Devices are Plug and Play. Camera Compatibility Firmware can enable any IP camera. 7 Cloud-Based Video Management Platform: Proprietary and Patented components SALES STRATEGY 8 Telecoms Data Centers Cable Service Providers ISPs Service Providers End Users Home SMBs Enterprise Government License Revenue Camera Revenue END USER APPLICATIONS 9 Home Small & Medium Businesses (SMBs) Enterprise Government Sentirs flexibility and cost-effectiveness provides an almost endless number of applications. BABY & PETS SECURITY DELIVERIES EMPLOYEE & CUSTOMER Surveillance MARKETING DATA SECURITYOFF HOURS VANDALISM REMOTE INSPECTION MONITOR PRODUCTION EMPLOYEE SAFETY SCHOOLS TRAFFIC PUBLIC BUILDINGS STRATEGIC BENEFITS 10 For IVEDAFor Service Providers Scale Service Providers - Millions of Customers. Established Infrastructure Service Provider will handle billing, hardware distribution, and data center for hosting Sentir on their cloud. Average Revenue Per User (ARPU) Revenue from existing customers Simple And Cost-Effective Sentir is designed to utilize and optimize existing data center. Pay Per Device Model No up front fees, immediate positive cash flow for service providers is an easy purchase decision and builds annuity for Iveda. Infrastructure Utilization Increased revenues for bandwidth and data storage in tandem with video surveillance service. REVENUE MODEL 11 Revenue Sources Software Licensing Fees - Perpetual $3/camera/month Hardware Service Providers expected to charge $5-$10/per camera IVEDA generates additional revenue from sales of its branded cameras 90% 25% Gross Margin TELECOM CONTRACTS 12 Philippines Long Distance Telecommunications - PLDT Philippines Largest Telecom TELMEX Telecom Part of America Movil Vietnam Post Telecommunications-VNPT Vietnams Largest Telecom Viettronics Vietnams Largest Electronics Manufacturer FPT Third Largest Telecommunications Provider in Vietnam RECENT TELECOM PARTNERS UPDATE Philippine Long Distance Telephone Co - PLDT 10,000 unit PO ($1.33MM) Vietnams Largest Telecom - VNPT Signed Framework Agreement in December 2014 Final licensing agreement Executed April ,000 unit commitment Hundreds of units per month per 63 provinces projected July Four Data Centers Installed with SENTIR P.O.s and Deposits in Process Viettronics 50,000 camera license commitment first year from June 2015 Agreement represent at least $1.8 Million in Annual Recurring Revenue In process for deposits and P.O.s (end customer is state owned telecom) FPT Agreement signed for 10,000 devices next 12 months VIETNAM TWO OTHER MAJOR TELECOMS IN PROCESS 13 ILLUSTRATIVE FINANCIALS 14 ActivationsHardwareHardware Margin Annual License Fee Estimated Annual Cash Operating Expense 250,000 $30 M$7.5 M$9 M$4 M 500,000 $60 M$15 M$18 M$4.5 M 1,000,000 $120 M$30 M$36 M$5 M CASHFLOW ANALYSIS EXAMPLE Accumulated Activations Monthly License Fee Hardware Monthly 8k-10k units Hardware Margin Monthly Cash Op Exp. Positive Cash Flow 30,000$90K (A)$1 - $1.2M $250K - 300K (B) $225K (C) A + B - C $115K to $165K MONTHLY CASH BREAKEVEN ANALYSIS ILLUSTRATIVE FINANCIALS 15 CustomerFirst Year Camera Activations Average Camera Revenue First Year Camera Revenue Monthly Sentir Fee per Camera End of First Year Sentir Fee Annuity PLDT 10,000$130$1.3 Million$3$0.36 Million VNPT 50,000 150,000 $120 $6.0 Million - $18 Million $3 $1.8 Million Million VIETTRONICS 50,000$120 $6.0 Million$3$1.8 Million FPT - IvedaHome 10,000$200 $2.0 Million$3$.36 Million Vietnam Telecom #3 Vietnam Telecom #4 REVENUE 2015 PROJECT-BASED CONTRACTS MEGAsys (100% owned Taiwan System Integrator) Secured $1.8 M contract with Chunghwa Telecom Secured $1.4 M contract with Taiwan Stock Exchange Secured $500K contract with Taiwan International Airport Secured $1.5 M contract with Chunghwa Telecom Secured $544K contract with Chunghwa Telecom for 2015 MEGAsys anticipated to be positive cash flow and profitable for 2015 with just these announced projects. 16 CORPORATE ROADMAP 17 With the launch of Sentir in 2014, Iveda is on course to execute on its licensing strategy culminating with an up list to Nasdaq and Profitability. Path to Profitability Sign Additional Service Provider Agreements NASDAQ Uplist Achieve Profitability Sentir Launch April 2014 Existing Service Provider Contracts Contracts EXPERIENCED LEADERSHIP 18 David LyChairman/ CEO 10 years cloud video technology within the security industry 14 years Sales Management, Telecom industry Bob BrilonPresident/ CFO 30 years as CEO, President, and CFO of NASDAQ technology companies InPlay (NASDAQ:NPLA); Duraswitch (NASDAQ:DSWT); Rental Service Corp. (NYSE:RRR) and Go-Video (AMEX:VCR) Dr. Joseph LeeCloud Architect Cloud computing expert CTO at 21Vianet, largest data center in China Sr exec at Microsoft, Lucent Technologies, Exxon and Owens Corning Dr. Eric ChenCloud Storage Founder/CEO of CA-based ProphetStor Data Services Big Data storage architecture expert Sr exec at FalconStor Software (NASDAQ: FALC), IBM Management Technology Advisors Enabling, Disruptive Technology CLOUD based - NO On-Site SYSTEMS or DVRs License SERVICE PROVIDERS to compete for Market Share INVESTMENT HIGHLIGHTS 19 SENTIR - Internet-based video surveillance PLATFORM Enabling Plug and Play Video Surveillance Proprietary and Efficient Software Platform Proprietary cloud based architecture Patented components Storage and Compute efficiency for Big Data Defined Path to Profitable Growth Service Provider Contracts in place achieve profitability Extremely Scalable Recurring Business Model LICENSE large Service Providers to deliver to Millions of established customers Large & Growing Market Nearly $60B Internet based video surveillance market GO APPENDIX 20 21 Easy to set up Excellent video quality at an affordable price See all your cameras on a single dashboard View from your computer, tablet or smartphone Cloud hosted, 24/7 Web access to live & recorded video Off-site cloud storage for video security True Plug & Play